Customer Reviews

Moscow Madness: Crime, Corruption, and One Man's Pursuit of Profit in the New Russia

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This is one of, if not the most, entertaining business stories I have ever read. I have several friends from former Soviet Republics, including Russia, and the only thing they would find surprising about my reaction to this book, would be that I was surprised.

The former Soviet Union and now several of the Former Republics always have fascinated me. As I have come to know some of its citizens I am less fascinated, but I am more interested, less perplexed, and find the future of these Countries great "what if" scenarios. A better-posited question might be when? Western Capitalists have found the hard way that just because the new name is "The Former Soviet Union" that does not mean 3 generations of dysfunctional Soviet practices disappear. The idea that generations that have grown up under Central Planning, artificial markets, and the rest of the elements that create a fictional economy are going to adopt and practice Capitalism instantly is absurd...former barriers fall, but they do not disappear, as many western investors were to learn, they were just replaced with new obstacles.

I have nothing but respect for Mr. Rick Grajirena. To even attempt what he did is beyond the level of risk that 99% of American Businesses have taken or will ever take. His business did not just have the exposure of failing, he put himself at personal risk, and that is not something a Silicon Valley start up faces. In Silicon Valley a roof keeps out the weather, in the case of this businessman it keeps you alive. For in the Moscow he chose to do business with, a roof has nothing to do with a building.

I think Mr. Grajirena is one of the world's great optimists, and a man who defines perseverance. Unfortunately these attributes are not what business is about in Russia or many of The Former Republics...The natural and human resources that are part of the former USSR are literally amazing. The wealth that could be created across the 14 time zones would be unprecedented... There are the predators and the prey. This is worse as these are not Countries without Governments; rather the Governments are the largest Predators of all.

Breaking something is easy, but if you consider it took the better part of the 20th Century to damage these Countries, what is the most optimistic time period for them to be reassembled?

Would you buy a book entitled "How I was trying to sell beer in a country X and blew it"? Probably not. What about "How I traveled with pirates, battled dragons, saved princess, selling beer overseas"? In fact "Moscow Madness" promises on its cover jacket an adventurous tale in the latter style, while delivering for the most part a fairly mundane business story.

Embellishment of one's foreign adventures goes back to times earlier than Marco Polo or even Homer. But what is remarkable about this book is that it is actually more honest, plausible, and conventional that juicy tag lines and excerpts on its cover. It is a story of some business successes and mishaps, cultural discoveries and misunderstandings, under the titillating wrap of crime, corruption and debauchery. Many of such stories could happen elsewhere, almost all of them - in any country during big transformation.

What about the omnipresent "mafiya" and "roofs"? Contrary to widespread perception and come-ons of the book cover, one can find that Mr. Grajirena (the book protagonist) and his company weren't threatened by "mafiya". A couple of times they considered doing business - on their own initiative - with shady-looking characters, and eventually declined. Most of the talk about "mafiya" in the book is a collection of keg party gossips and third-hand accounts. This doesn't mean that "mafiya" and corruption didn't exist - there were (and still are) plenty of them; it just wasn't completely unavoidable.

It is a common knowledge that many western businessmen trying to do business in Moscow during 90's were in constant danger for their lives, right? Actually, statistics tells a different story. The only relatively high-profile American businessman killed in Moscow in a whole decade was Paul Tatum - co-owner of a luxury hotel complex. Tatum adopted "mafiosi" style more enthusiastically than any "New Russians", surrounding himself with thuggish bodyguards and miniskirted bimbos, and swam in chaos and corruption like fish in the water. Even many of his fellow American expats said they saw it coming.

A few years ago I witnessed (in US) an attempt to make a payment in a Russian-American business deal with a suitcase of dollars (the only time I've seen a suitcase full of cash in my life). No, it wasn't a stereotypical group of heavyset Russian "biznismeny" flashing piles of cash to the consternation of their American partners. Americans were the ones who brought the suitcase. The deal was in fact was totally legitimate, and neither side had any connections with organized crime How did they come up with this idea? Probably read too many stories about business in Russia, which supposedly operated only on bags of green banknotes.

The book details the story of Rick Grajirena, a renowned yachtsman, who previously ran a modestly successful business related to his sailing hobby. Nothing in his resume, however, suggested he should excel in selling beer in Moscow. In starting a business in a foreign country it would be helpful to have a thorough knowledge of either a country or a business itself. Grajirena didn't know much about either Russia or beer wholesaling. This is not an absolute prerequisite, but neither did he show enough concentration, jumping for a while from one project to another. Miller beer distribution came up only by chance, after dabbling in some other semi-serious ventures without particular focus or expertise. Why did he feel entitled to success?

Probably it had to do with the general atmosphere of the times. Many westerners in early 90's were attracted by a combination of the "new frontier" thrill, sense of self-important mission of "converting heathens", and expectation of easy buck along the line "these Russians are so clueless about business and capitalism, anybody barely able to operate a hot-dog stand should be raking in money". If this was ever true at all, it was quickly becoming less so as market reforms took hold.

In 1990 one could ride in a taxi around Moscow for half a day for just a pack of "Marlboro". It would be stupid to assume this will persist forever - and such attitude seems to be one of the causes of the First Republic eventual failure. In early 90's selling something with American brand name was easy. But the market rapidly matured. Hundreds of new consumer goods were appearing each month. The previous assumption that any western-made product will be snapped up instantly was no longer true. Prices, rents and salaries rapidly increased in dollar terms. In the beer market competition become very tough, with many foreign and new domestic entries available. Some problems they encountered were related to Miller Brewery itself. Once a large shipment of beer froze because Miller neglected to put it in insulated packaging.

As the company, after many successful months, encountered difficulties (stemming, as evident in the book, primarily from increased competition, and only to some extent due to red tape, chaotic regulations or corruption) they invited American consultants to make recommendations for improvements. Author then pours scorn on these consultants - they seemed to lack credentials they claimed. Ironically, some of their advices seem quite reasonable. Basically their suggestion was for Mr. Grajirena to behave less like an arrogant colonialist expecting almost to be carried on stretchers by obedient servants.

There is a story at the end of the book about young American lawyers - a "golden couple" with "bright future". The girl came to work in Moscow, was excited by its wild atmosphere and went into clubbing, drugs and promiscuity, left her husband, became addicted and even reportedly attempted a suicide. A stern warning - don't even dare to think that "bright future" can be anything other than working 80-hours week on some mind-numbing legalese and returning at night to a trophy home in a prestigious suburb. For many such wisdom will suffice, some others will still find more places around the world for adventure and "madness".

Moscow Madness takes you through Russian customs and then provides a forensic-like look into the business customs, chaos and cultural impediments facing American entrepreneurs seeking to be business pioneers in the new Russia. Tim Harper presents a compelling and original hybrid style of writing that is part novelist and part foreign correspondent. Moscow Madness gives new meaning to "red tape." The story is told chiefly through the entrepreneurial and cultural adventures of Rich Grajirena. Although Rich Grajirena never earns more than 100,000 in a year, despite years of complicated, creative, trans-Russian endeavors, his Moscow setting machinations provide the reader with a multi-million dollar look into the new Russia. What makes the book particularly appealing and easy to relate to is that the story concerns the frustrations of an individual seeking to traverse Russia's business terrain and not a difficult to relate to conglomerate. Moscow Madness offers microscopic-like clarity as to how difficult it is to start up a successful business, let alone one that requires the successful merging of two distinct countries, cultures and colorful characters. While most present day writer/attorneys are fixated on court room drama, Harper utilizes his foreign correspondent and legal background by painting on a much larger geographical and sociological canvas. Harper convinced me that while Russia may no longer be the evil empire Moscow Madness is real.

Mr. Harper's narration of Mr. Grajirena's attempt to successfully establish a Western style distribution network in Moscow is a pleasure to read. Many of us who have tried to do business in Russia can relate to Mr. Grajirena's experiences. The book does relate one man's experiences, but in doing so it provides us all with a picture of what it is like to explore opportunities on the new frontier. The book is well written and informative. I have read many books about Russia and Russian business and this was as informative as any and the most enjoyable to read. Anyone interested in working with Russia will benefit greatly from reading this book and anyone merely interested in contemporary life and business in Russia will enjoy reading this real-life account.

I've been "on the ground" in Moscow since 1993 and can relate to Tim's wonderful description of Moscow Madness. This is a great read that the few of us that have lived through trying to do buisness there will really appreciate. I believe that pioneers like Rick Grajirena will reap the rewards of this wild west and prove the pundits wrong.

More than anything, this is the must read book for any Russian who deals with Americans, a new generation person who learns to live in the international business environment. The book, in my opinion, reads like an extended Harvard Business Case - concise, factual, and very informative. Besides learning the useful tips on living in Russia, dealing with Russians, you will get an insight into our Soviet culture. I think that the author did a really great job at understanding us, the former Soviets. What we now need to do is translate it into Russian and have it sold in Moscow - Moscovites will love it. :) Any other books coming out soon, Mr. Harper??

I really wanted to like this book, and stayed up late to finish it off. But it's hard to take a book completely seriously when it puts Sakhalin Island on the Atlantic Coast ( page 206 ).

The book has many lessons for the investor. The first being, don't leave your circle of competence. Here was someone who had a lot of expertise in the sailmaking world, from a U.S. business perspective, but no expertise it appeared in Beer distribution or in actually basing business overseas.

The second big lesson for the investor is - don't put your money into something until you see something concrete. Mr Grajirena seems to have made much of his money drawing a salary from schemes that have no sales! Much of his time appeared to be spent travelling to Russia on a vague hope of some outcome ( the set-up of EuroHealth ).

It is interesting to note where Miller Beer is now with regards Russia. Miller Brewing has been sold to South African Breweries ( how many people know that Miller Genuine Draft is now NOT American owned ? ), and Miller Beer sold in Russia is now made in Russia. SAB has bought up old East European breweries, and refurbished them. SAB is now the world second largest brewer. Someone made money in Moscow.

What comes through in the book is the level of arrogance of many Americans doing business overseas. An example of this in the book is when specifications are delivered in inches not metric. The American answer to the Russian complaint is that the Russians built a space programme copying, so why can't they change these measurements this time ?

But the book does have the imagination running with " what if " possibilities when the Miller brand becomes established in Moscow. What if they had operated within their working capital and kept to a more reasonable business plan ? What if they had kept their expenses to a minimum from the outset ? What if they had properly organised their finances and had enough equity raised ?

By all means read this book for insight into Russian business. But consider also the largely unconscious window it gives us into how Americans see the world ( as a subsidiary of USA Inc ).

Journalist Timothy Harper has written an absorbing, detailed business saga. This intimate account chronicles the wild and frustrating adventures of U.S. businessman Rick Grajirena, an import-export entrepreneur in Russia's new free-market economy. "It was not difficult for Grajirena to find prospective partners and possible deals. Indeed, when it became known that he was an American looking to buy and sell in Russia, all sorts of characters - some seemingly reputable, many obviously not - came forward with one scheme after another." In the midst of this colorful cast of characters, Grajirena shines as one of the "good guys" as he jumps into and out of the beer biz and ends up in health foods. He runs into every form of Moscow madness, from the mafiya to some basic cultural divides, and manages to thrive as well as survive. We [...] highly recommend this swashbuckling book. In fact, we can't wait for the movie.

This book is excellent and I recommend it as a MUST read for anyone considering doing any business in Moscow and to a lesser extent other cities of Russia. I lived there for two years and had my own fair share of bizarre business experiences and even a dose of "Moscow Madness"...don't ask! This book is full of well told true episodes of how Russia was in the 90's.

Good book. A great airplane read. You can't put it down. What is Mr. Grajirena going to have to put up with next? And how does he keep such a good disposition throughout. I was fascinated with his American employee who just became a defacto Russian. Talk about adapting! And I appreciated the author's followup on the alleged "mysterious" disappearance of the American restaurantur whose departure wasn't so mysterious afterall. Mr. Grajirena's "can-do" attitude when the warehouse walls collapsed was impressive. What else would an American have done. Enjoyed the book and wish Mr. Grajirena well in whatever ventures he pursues. Switching from Miller to Bud!!